Benefits of Whole Life Insurance
[social_share]With the many types of life insurance policies on the market today and the copious number of specialised types of coverage available, it can be beneficial for anyone hoping to buy life insurance to revisit traditional whole life insurance. Whole life insurance is still regarded as a very sound and wise investment, with many advantages available to policy holders who wish to make the most of the money that they will be paying out on monthly premiums. Below is a list of the benefits which are common to most whole life insurance policies
Lower premiums later.
Because whole life insurance policies typically do not adjust premiums for most of the policy’s term, the policy holder can end up front-loading their policy in the first two decades of what will probably be a 30-year life insurance policy. This means that if the policy holder so desires, they can restructure their whole life insurance policy to adjust the premiums later on. This can result in savings for the policy holder, whereas other types of life insurance policies will often not grant the customer such a luxury.
Cash and loan value.
While a whole life insurance policy holder can elect to lower their premiums near the end of their coverage, they can also choose to continue paying the same premium for the life of the policy. This, in turn, builds up an even bigger cash value on their whole life insurance policy and can equal a bigger payout for them once their policy expires. Or if the policy holder prefers, they can also withdraw a loan against their whole life insurance policy, the amount of which will be more substantial if they maintain premiums throughout the policy rather than adjusting it to a lower premium later in life. In this way, a consistent premium on a whole life insurance policy affords the policy holder a much bigger return on investment.
Constant coverage.
When a policy holder is insured under a whole life insurance policy, they have applicable coverage and benefits, whether or not they die or survive the term of their policy. In the event that the policy holder passes away, their dependants and beneficiaries receive a death benefit payout to help with funeral costs and other expenses that the policy holder would have normally provided. If, however, the policy holder does not die and manages to outlive their coverage, they still benefit by obtaining a payout for the value of their whole life insurance policy. This money can be spent, reinvested, or placed into a savings account and distributed to the policy holder’s beneficiaries upon their death.
